Shanghai hanging in there. Higher by about half a percent. European equities, of course, this one often the last week or so has been the tale how we begin the trading day. Ftse might be down. Spain ibex down one and a quarter. Interestingly was in positive territory. 6522. It is higher than before britain voted to leave the eu. Take a look at crude, wti down about a 133. Natural gas has been rallying this year down about the same amount. I want to thank you for being here. Bern stooen was a merrill guy for quite a long time. Made quite a name for himself, but for him to come in here and be the guest host for an hour is really good for richard bern seen the advisers. I think it says you couldnt get anybody else. That may be true to some extent, but im thanking you. Its nice to see you. Im glad youre here. Im sure he didnt need to set his alarm. Couldnt wait to get here this morning. Chopping at the bit. I think either works. Cham champing or chomping. Its champing. 6 02. If youve never looked up a list of common mist stated. Its really fun. Theres raising my hack ls. Sand toe the line, its toe. If you had any idea about how much Economic Data is going to be packed into this shortened trading week, in may you have factory orders. Wednesday we get june Service Index of the ism. And the minutes from last months fed meeting, we get to hear more about whether theyre going raise rates. Its been like nine years and weve talked about it every day just about and weve had one quarter point increase. Were going to continue to talk about whether theyre ever going to raise rates. Did you see the 10 year today . Thursday, its the june adp employment report and weekly job claims and on friday, unbelievab unbelievable, sit already again the jobs report. Life is going really quickly. Here we are again. First week, first friday, first week of the month. That means the summer is going way too quick. It is. Now to british politics as the search for next prime minster continues, Boris Johnson throwing his support behind Andrea Leadsom to replace David Cameron. Hes not going to throw support by the guy that stabbed him in the back. Leadsom is calling for a quick brexit. She was a brexiter. Shes not like that other lady that was a remainer. A quiet remainer. And then someone saying leave. Yes. And the first round of the parties leadership takes place today. The big surprise over the weekend, nigel farage. That is why i now feel that ive done my bit. I couldnt possibly achieve more than we managed to get in that referendum so i feel its right i should now stand aside as leader of uk. So far farage has declined to endorse a candidate. Were going to talk more about the brexit fallout with wilfred frost later. Hes going to join us. Are you not watching in the afternoon . Does he come sometimes . He does. I try to watch every day. Maybe its on my dvr. When was this . Hes done it a couple of times. Can you imagine how long a day that is. Hes doing five to six. And then hes doing the three to five. I asked him, you probably didnt see this, i asked him if he was here yesterday for the first july 4 in the states and whether he was still harbors any resentment. Our vote to leave . Yes, and then we basically changed the world and became the only remaining super power and they kind of have a navy left at this point. I dont think you should throw that around. I know. We have a lot of viewers. I would like to buy some property. Everybody else outside of britain is going to buy britain. Where would you buy. I want kenzington. Thats where all the french are, arent they. Are they . Im a fan of north london. Thats where i lived. Really . Yes. Speaking, news just in from the bank of england. Amount to the first easing of policy since the vote to leave the eu. Lowering capitol requirements for british banks. A move to raise lending capacity. It also says for now uk banks will not be able to increase dividends on stock buy backs. Bringing do you highlights of the remarks as they come in. Stocks to watch today, microsoft and man san toe teaming up to start in brazil. Digit too manies that will be applies applies applies applies to production. How about tesla delivers more than 14,000, but missing the companys target of 17,000. Tesla blained a large number still en route to customers. Those shares are under pressure again. Down nearly 4 . London Stock Exchange holders have voted to approve a merger. The lsc is confident it can get approval from brussels and ample time to work out a deal before britain leaves the eu. A lot of these deals were still in question. They appear to be going through both as the european stocks have been lower under pressure today. I did not miss this. I did see it. Whenever it comes on i wish i hadnt seen it and on espn i look away for a second and theyre covering this thing t. Guy who won, i think he ate 70 hotdogs in ten minutes. I dont need to think about that. I dont need to see it. I dont want to think or know anything about it. I dont know why people do it. I dont want to cover it. Its not a sporting event. It was the annual july 4 hot dog eating contest. It featured a comeback and a new record. Joey chest n joey chestnut. Hes a really good hot dog eater. He beat his own record. He gained the belt yesterday. As i said, i didnt want to bury the lead. He ate 70 hot dogs and buns in ten minutes. How would you like to have him at your tailgate. I just dont want to be anywhere near him before or after. Thats the most ever eaten at the competition. Topping his competitor by 17 hot dogs. This win is a huge victory for chestnut. Last year stony ended chestnuts streak at eight straight wins. He had something to prove. Do grow prowith that eventually. They are pro. Theres a pro tour. It was on again when i walked out of the room. I cant escape this thing. Now i think thanks for including that in our joey chestnut. What an athlete. Lets get back to the markets. A check on futures this morning. We saw stocks under pressure. You can see dow down. S p down, nasdaq down too. The question is now which way do we go on this knife edge. The euro a little bit weaker against the dollar today. You can see that 1. 1144. The pound same story. Weaker, down to 1. 31. Theres the yen. Its at about 101 to the dollar crazy to see it go below 100. Looking at gold, its up another eight bucks. The countdown is on to fridays job report. Joining us brad mcmillen. Our guest host continues to be richard bern stooen, ceo of bern seen the adviser ss. Also a cnbc contributor. We always talk about how important sit in right of whether we raise rates or not. Now we had brexit, i dont know if its an important report or not. Its not going to give us an indication do we get a rate hike. You dont want one anyway. I never thought they should have done the first one. We were in an environment where inflammation expectations were fall sglg youre a money manager. You love the qe. You love the extraordinary measures. Anything to lift up financial prices so it looks like you know what youre doing and you get more clients. Everybody makes money. Dont you think eventually you want to worry about wanting all this free money. Look, free money is an interesting way to drin it. I think the question is should the fed be raising rates in an environment with a nominal economy is not that strong. On the one hand you have everyone complaining the economy is punk. Were seeing the worst recovery and you have people who want to raise rates. I misspoke. People will pay you actually to i forgot. Brad, what could happen this friday that could change any of the calculous for the next hike. I think if we get a terrible jobs report, its going to change the narrative completely. We had one bad job report. We get another one, we really need to start worrying about jobs which is what kept the economy going so far. To we Start Talking about so much pattern we could always cut a quarter point, but do we ever go negative do you think . Were 138 today. Do we ever duonegative. I dont think we do. Given structure of the u. S. Economy. Negative wouldnt do anything for us. Negative has too many costs, too few benefits. Other things they can do. Fiscal policy probably has to come back on the table at that point. These are records. Soil a supply thing again or are we getting worried about demand now. Both, really. I think this fridays report will be important to see if that or not. The weekly claims dont seem to square with the weak job reports so i dont get that as far as our economy goes. What is pressuring here oil is the dollar should be stregthening as well. I dont see why its not more of a safe haven. Even more than the japanese yen. We have currencies working against oil, but look, there will be a lot of the other data to watch this month over the next couple of weeks is the chinese data. Its been week out there. To the extent we dont see an improvement, the demand story there is going to collapse because a big part of their demand thats been propping up oil prices has been oil going into their extra siegic reserve thats just about full. Once that goes off the board and we dont have that anymore, the narrative is going to turn real bad. Shanghai kposive overnight. Why do you think that is, the chinese issues as youve said havent gone away, the concerns about the economy there. The old saying in the United States was dont fight the fed. You take that overseas; doesnt have the same ring. Dont fight the pboc. Theres also in certain places around the world and even in the oil sector for a lot of the oil companies, youre coming up against easy comparisons as you go through this year so if oil or commodities or anything frl a lot of different countries, it doesnt have to get better. All it has to do is stop getting worse and by the end of the year, comparisons are pretty good. Theyve already made all kind of move. They let the yuan depreciate. I dont know how you feel about the auto makers, but theyre dividend yields are pretty huge. That i have been trading poorly after the latest Monthly Sales numbers, what would you do with the auto makers . I think it makes sense. Weve seen sales continuing at a rate. The u. S. Economy, we dont need things to get substantially better. We just need a lot of things to stop getting worse. Theres signs that actually starting to happen. So i dont expect jobs to go down. I expect them to come back and people are going to continue to spend. Theres still enormous demand for autos. The manufacturing number got lost amid all the stuff last week, it was up a lilittle, 53. The Services Number were going to get this week, does that give you enkourngment . Exactly right. Weve seen two huge head winds here. Weve seen the strength of the dollar. Oil is going to start to revive. Weve seen the manufacturing drop thats coming back. Companies have adapted. Weve seen jobs continue to grow despite the terrible last report. In other words, weve gone through a terrible sixmonth period, but the fundamentals are still here. Were still solid. Were also going to see earnings. I just thought of that too, is june the end of the quarter. I guess. Oh, god. Theyre coming. Were going to have another snapshot and its not going to be great. People are pointing out its the longest earnings recession weve had in history. Youre looking for down 5 again. I dont see i mean, i know it feels good when you stop hitting your head against the wall. Thats an upside for people, but this is you keep coming back to the best house the a bad neighborhood. Not even. I think we are in a profits recession, but the people are noting the rate of change has troft. The worst part with two quarters ago. When that happens, you start getting rotations. Thats actually happening. Look at the Energy Stocks for the most of the year. Material stocks for most of the year. Thats the signstarting to chan nobody catches on not at the troft, but about see that happen and still have ha 13810 year. My guess is yes. Because im not the best forecaster of Interest Rates. A year from now, the 10year will be higher. I dont think im going on a limb to say that. Except people said that for five or ten kwleers. But dont forget, you said weve been in the longest recession since who knows when. So were going have earnings. Thats something were going to be focused on. Then the conventions. Well. This is going to be a political and were going to have a lot. Even though its going to start getting sboog the summrmmer roo will cnbc be there . We are going be there. Everybody is doing well with a political year, advertising. These conventions could be interesting. July 16, getting underway. Picking some general. The list has been expanded, but pretty establishment names. The post is saying its flint. Michael flint. Then it must be right. You know the post is accurate on all sorts of things. One of the best youre talking about the new york post. Oh, good. I thought you were talking about the washington post. If i could fgive a shout out to a marine. Sa just wanted to say hello. Thank you all for joining us. Coming up the veep stakes is heating up. Well continue monitoring comments from bank of england, governor mark carney Just Announced an easing on bank lending rules. Theres a look at the ftse. Squawk box will be right back. At the beginning of the 21st century, the earth needed to find a new way to keep up with the data from over 30 billion connected devices. Just 30 billion . A bold group of researchers and computer scientists in silicon valley, had a breakthrough they called. The machine. It changed computing forever. And its been part of every new technology for the last 250 years. Everything . Everything this year, Hewlett Packard enterprise will preview the machine and accelerate the future. See star trek beyond. Welcome back to squawk box. Lots of political buzz over the weekend. Hillary clintons fbi interview and new potential vp picks. Kelly, it was a weekend that underscored just how bizarre this weekend is. First of all, donald trump sent out a tweet which called Hillary Clinton the most corrupt candidate ever. It pictured a star that matched the contours of the star of david over a pile of cash. Now, this took intense criticism. It turns out that it had first appeared on a white sur prem cyst website. Donald trump said thats not what he misrepresenteant. It was the same as sheriffs badges or a plain star. Secondly, Hillary Clinton had a three and a half hour interview with fbi investigators looking into the cko controversy over h em. Email. We expect to hear from the Justice Department soon on the outcome of the fbi investigation. We dont expect Hillary Clinton to be charged. That does not set the controversy to rest in part because of that meeting. Finally in this campaign the veep stakes is the third most significant thing that happened over the weekend. Nevertheless, the progress is fwriending on. From Hillary Clintons point of view you had some of her choices. Donald trump was meeting his with potential choices like mike pence t governor of indiana, joe unithe governor from iowa. Praising tom cotton, the senator from arkansas. We are two weeks away from the convention and a remarkable view of what is happening. The controversies and the kind of controversies that loom over both of these candidate. Steve jo john, that was the most foe controversy that weve seen. I dont want to get into this. I dont know if i would be talking about it. Trump over the last year, theres been 30, 40 things people try to get traction on and see if it will stick. Im talking about the media from time to time. The mexican judge or the american judge with the mexican herita heritage. That was something that got a lot of traction. This thing with the star, hillary is not jewish, but Donald Trumps soninlaw who is a main part of the campaign is and so is his daughter. To say that was a straight face and i looked at the Huffington Post and i just thought it was i dont know. I think that people are not going to use that to make any determinations. Thats one that as a slow all this stuff against the wall, thats not one. Does it bother you that the image came from a neo nazi white sur prem cyst website. I dont know if he knew it came from that or not. Hillary is not jewish. I dont understand that. It makes a lot more sense maybe stuff on antisemitic have messages embedded in them that occur to people looking at those websites. Right. I dont know whether at the time he knew that it came where the, you know, where the original image came from. If shes being interviewed equity the fbi and its a sheriff type its like a Law Enforcement badge. Huh. You think that was a you know what, if you guys hear dog whistles everywhere. Everything sg a dog whistle. That one, i dont know. Youve got no problem with it, joe. What are you talking about . Im saying i dont think i veronica converted to jude yichl. How are you making the connection . I think the connection comes from where the image originated from. You hope so anyway. A lot of the media does. To me it seems throwing it up against the wall and hoping it sticks. Every person can decide what theyre comfortable with and what theyre not. If youre not uncomfortable with it, thats your sensibility. I saw it. It looks like a slfrs star. If it hadnt been originally from an antiis a mittic or white supremacist website, then would it been construed to be antisemitic even though hillary is not jewish. The typical image you see of a star usually has five points to it. Not a sheriffs star, i dont think. I understand. All right. Shes appearing in front of the fbi and talking about crooked hillary and flthree and a half hours and this has been going on for about a year. Joe, im not telling you what to think. Just saying the people who understand that appeared previously on that website might raise questions about why was the Trump Campaign using an image that came from a source like that. And the cesspool that is twitter, i dont retweet anything. I dont actually i try not to say anything either because its just i dont know. Its the end of days, john. The stock price, they deserve. We got a few days ahead of us. Hopefully. The way social media takes us. Anyway we didnt talk about the veeps or anything. This general is not going to be veem. Who is going to be hillarys veep. Im betting on tim cane. Trumps veem im betting on chris christie, but well see. That would be taking it to him. Thats two pretty abrasive aggressive guys. In your face guys. Yes, no yquestion. All right. We can agree to disagree. Nasa yjuno reaches. We have the details straight ahead. Here is a look at last week s p w